Tata Motors sells defense portfolio to Tata Advanced Systems Ltd
Date: 2018-05-06   Author: Dhananjay Punekar  Category: #industry

Tata Motors sells defense portfolio to Tata Advanced Systems Ltd

The Board of directors at Tata Motors have apparently declared that they have approved the sale of the company’s defense unit to Tata Advanced Systems (TASL). The sale deal however will not be including civilian vehicles, claim authentic sources.

According to The Economic Times, Tata Motors has delivered nearly 1.5 lakh vehicles to the Indian Army. Reportedly, the company is expected to accrue proceeds worth nearly INR 100 crore from the transaction. Furthermore, the Board has also approved the sale of its stake in the wholly-owned segment of TASL referred as TAL Manufacturing Solutions at an estimated amount of INR 625 crore. As per the terms & conditions of its sale deal with TASL, Tata Motors is likely to obtain the non-aerospace business of TAL for INR 10 lakh – in alignment with Tata Motors’s plan of promoting Turnaround 2.0.

The company’s current move is expected to help the Tata Group expand its defense activities by influencing the economies of scale and reinforcing the aviation & defense unit at the group level. The firm is forecast to use the proceeds from the deal to monetize non-core assets, thereby minimizing the overall debt.

Guenter Butschek, the Managing Director of Tata Motors, has proclaimed that the firm has been a key partner of the Defense Ministry of India and will continue to provide it with civilian logistics vehicles. He further stated that the recent defense portfolio had limited scope and it was the need of the hour to upscale the same, which has led to the firm’s decision of selling its defense segment to TASL.

The key officials of Tata Motors Limited (TML) are of the view that TASL has the ability to handle bigger & more complicated defense projects and is highly competitive across the defense market in India. The MD of TML asserted that the firm’s decision to divest from TAL Aerospace was based on the fact that the latter’s business activities were non-core to Tata Motors



About Author


Dhananjay Punekar

Dhananjay Punekar

Dhananjay currently works as a content writer at AlgosOnline. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted fo...

Read More

More from Dhananjay


Post Recommendents

Heat Guns Market Comprehensive Study with Key Trends, Major Drivers and Challenges 2018-2023
Author: Partha Ray

The Global Heat Guns Market 2018-2023 Renders deep perception of the Market Segment by Regions market status of the Heat Guns on a global level that primarily aims the core regions which comprises of continents like North America, Europe, Asia-Pac...


Casino Gaming Equipment Market to 2023: Growth Analysis by Manufacturers, Regions, Types and Applications
Author: Partha Ray

Global Casino Gaming Equipment Market Size 2018-2023 report provide emerging opportunities in the market and the future impact of major Key vendors and Market driver and, support decisions in making cost-effective business decisions. The market re...


Scoop Stretcher Market Global Growth, Opportunities, Industry Analysis & Forecast to 2023
Author: Partha Ray

Global Scoop Stretcher Market Report Renders deep perception of the Market Segment by Regions market status of the Scoop Stretcher on a global level that primarily aims the core regions which comprises of continents like North America, Europe, Chi...